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At the beginning of 2019, Sandy Brewer had a zero basis in her 38 shares of stock in Lindlee, an S corporation, a zero basis

At the beginning of 2019, Sandy Brewer had a zero basis in her 38 shares of stock in Lindlee, an S corporation, a zero basis in a $5,000 note from Lindlee, and a $7,400 carryforward of a prior year ordinary loss from Lindlee that she was unable to deduct be-cause of the basis limitation. Early in February of the current year, Sandy was notified by Lindlees attorney that the corporation was bankrupt. Consequently, Lindlee was defaulting on its $5,000 debt to Sandy, and Sandys 38 shares of stock were worthless. Describe the consequences to Sandy of the worthlessness of her Lindlee investments (note, stock and loss carryforward).

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